Nottingham IT firm swims towards bigger waters with private equity investment
Nottingham-based IT firm Littlefish has secured a minority investment from private equity investor LDC.
The undisclosed investment will be used by Littlefish to accelerate organic growth strategy.
Headquartered in Nottingham, Littlefish provides managed IT services, IT consultancy, cloud services and cyber security services to companies such as Blackstone Property Management, Farrow & Ball, Studio Canal, PDSA, NSK and Macquarie Energy. It currently supports more than 35,000 users worldwide with a 24/7/365 service.
Led by chairman Graham Gilbert, chief executive Steve Robinson and services director Richard Roome, Littlefish has averaged annual growth of over 40% in recent years. The business is on track to record revenues of £18m for the current financial year, up from £1m in 2010. The firm employs more than 200 people in Nottingham and Greater Manchester.
As part of the deal, LDC has committed to providing further follow-on funding for acquisitions.
Robinson said: “We have a fantastic team at Littlefish and with their hard work and dedication we’ve been able to grow the business into a truly formidable player. We know what our customers want and how to deliver it successfully. To embark on the next stage of our strategy we need to bring a partner on board that will give us the firepower to build on this momentum and scale, as we continue to successfully compete against our much larger rivals.
“Our partnership with LDC will allow us to do just that. The LDC team is committed to our ongoing journey and their flexibility, strategic expertise and financial support will help accelerate our growth plan. Their considered approach, and comprehensive understanding on what we want to achieve made LDC the right fit for us and we’re looking forward to working with them as we continue to take our market-leading services to more customers.”
The transaction was led by investment directors David Bains and John Green at LDC in Nottingham.
Bains said: “Since Graham, Steve and Richard acquired Littlefish in 2010 they have diversified and transformed the business. Its year-on-year growth demonstrates the strength of the proposition they have developed, as well as their unwavering focus on quality and customer service. They have built an enviable offer and despite the firm’s success so far, Littlefish is still only at the beginning of its journey.
“We know the business well and the ambition, drive and vision the team has demonstrated over the past eight years is exactly what we look for in a management team. It’s an exciting time for Littlefish and we’re looking forward to supporting the next stage of the company’s development.”
Debt facilities were provided by HSBC to support the transaction.
LDC was advised by Gateley (legal), BDO (tax), RSM (financial due diligence), Armstrong (commercial due diligence) and Silxo (IT due diligence).
Littlefish was advised by Clearwater International, Browne Jacobson (legal) and KPMG (tax).
